An investment group behind the Mandarin Oriental Residences Beverly Hills have defaulted on a loan of more than $200,688,474, putting the property at risk of foreclosure, according to a notice of default filed last month with the Los Angeles Registrar-Recorder/County Clerk.
According to real estate news outlet Bisnow, the default prompted a bulk sale of more than 44 condo units at the property, which is owned by developer Michael Shvo’s eponymous company, Deutsche Finance and a consortium of German pension funds. In a statement, a spokesperson for the group said it had “arranged financing with JP Morgan but chose instead to work with the lender to market the remaining units in a bulk sale.”
The spokesperson added that more than 10 units have already been sold at approximately $3,200 per square-foot, and Adam Spies, Co-Head of U.S. Capital Markets at commercial real estate firm Newmark, will lead the bulk sale of the remaining units.
“The decision allows the partnership to reallocate investment resources to purchase new income producing assets, in anticipation of a lower interest rate environment,” the statement said.
This is a developing story which the Courier will continue to monitor.
